Laura Loomer’s SBF Pardon Warning: Politics Shaking Crypto

Conservative commentator Laura Loomer has sparked a political and crypto firestorm after alleging a “massive and well-funded” effort to persuade President Donald Trump to pardon Sam Bankman-Fried (SBF), the imprisoned founder of FTX. 

The claim went viral across X (formerly Twitter), reigniting debate over political influence in the crypto space and reviving the long shadow of the FTX collapse.

The speculation, while explosive, remains thinly supported by evidence. Still, its ripple effect underscores how political rumors can sway crypto markets, especially in a volatile election-year climate where crypto policy plays a growing role in partisan strategy.

Key Takeaways

• Laura Loomer claimed on X that a “massive lobbying effort” is underway to secure an SBF pardon.
• No public lobbying disclosures or Justice Department filings support the claim.
• Bloomberg and WSJ previously reported that SBF’s parents explored potential pardon strategies.
• FTT token briefly surged in July on false rumors of a Trump pardon.
• Polymarket bettors assign just a 3% probability of SBF’s release in 2025.

The Viral Claim

In her post on X, Loomer warned followers not to “fall for” an alleged campaign framing Bankman-Fried as a victim of political bias. She wrote, “He’s going to pretend like he was a victim of Joe Biden and the Democrats after he funded all of the left’s campaigns.”

The message resonated across partisan lines, quickly accumulating retweets, reactions, and conspiracy threads linking FTX’s past political donations to the 2024 election fallout.

However, despite the online frenzy, no concrete evidence has emerged of a large-scale, organized lobbying push — only fragments of previous reports suggesting exploratory legal consultations by SBF’s family.

Read Also: Is Sam Bankman Fried Free? Looking at His Prison Transfer

What’s Actually Known

The Bloomberg and WSJ Reports

In January 2025, Bloomberg and The Wall Street Journal reported that SBF’s parents — Stanford law professors Joseph Bankman and Barbara Fried — had discussed potential legal strategies to seek clemency. The outreach reportedly involved drafting memos and seeking advice from political consultants linked to Trump’s network, though no official contact was confirmed.

No Registered Lobbying Activity

A search of the Lobbying Disclosure Act (LDA) database found no firms registered to lobby for a “Bankman-Fried pardon.” Experts note that pardon lobbying often operates in a gray zone, disguised as “government relations” or “legal strategy,” allowing consultants to avoid registration.

No Action from the Justice Department

The DOJ’s 2025 clemency list includes no mention of Bankman-Fried. There are no public filings, dockets, or White House petitions suggesting that any pardon process has advanced beyond preliminary discussions.

Political Smoke and Market Fire

Despite the lack of confirmation, rumors about an SBF pardon continue to have tangible effects — particularly on crypto markets.

In July 2025, a viral post claiming Trump had already pardoned Bankman-Fried sent the FTT token — the defunct exchange’s native asset — soaring more than 50% in hours before collapsing after the rumor was debunked.

The episode revealed how quickly political speculation can trigger on-chain reactions, highlighting the fragile psychology of crypto markets where headlines often outweigh fundamentals.

The Trump Factor: Crypto’s Wild Card

Donald Trump’s second administration has taken an overtly pro-crypto stance, positioning the United States as a “global blockchain leader.” His team’s rhetoric around deregulation and industry inclusion has won applause from some investors and entrepreneurs.

But it’s also stirred controversy — especially following his March 2025 pardons of BitMEX co-founders, including Arthur Hayes. Those decisions fueled debate over whether political loyalty and influence could determine legal outcomes in crypto-related cases.

Against this backdrop, Loomer’s warning strikes a nerve. If a pardon for Bankman-Fried were ever seriously considered, it would instantly become one of the most polarizing acts of Trump’s presidency — symbolizing either redemption or favoritism depending on one’s political lens.

SBF’s Current Situation

Sam Bankman-Fried is currently serving a 25-year prison sentence and faces $11 billion in forfeitures following his conviction for fraud and money laundering.

From behind bars, he has continued to reshape his public image. In a March 2025 jailhouse interview with Tucker Carlson, SBF distanced himself from Democratic politics and echoed critiques of federal overreach — remarks that some saw as a calculated attempt to appeal to conservative audiences.

His legal team has filed an appeal, arguing that the trial judge displayed bias and that the jury was improperly influenced by media coverage.

Crypto Reaction and Market Outlook

The Loomer-driven debate has underscored how intertwined U.S. politics and crypto have become. Traders and analysts alike note that political rumors can now move token prices as quickly as regulatory updates or ETF approvals.

FTT, which remains thinly traded, saw mild speculative activity after Loomer’s post — though no significant price breakout followed. Broader market sentiment around Bitcoin (BTC) and Ethereum (ETH) remained stable.

On Polymarket, bettors priced the probability of an SBF pardon in 2025 at just 3%, signaling overwhelming skepticism that Trump would extend clemency in an election-sensitive year.

Still, experts caution that perception matters more than probability in crypto markets. “Even unverified political rumors can drive temporary rallies,” one analyst said. “In a space where sentiment rules, the line between rumor and reality is blurred.”

What It Means for Crypto Investors

For investors, the latest episode is a reminder to separate political theater from market fundamentals. The intersection of high-profile legal cases, social media influence, and price speculation remains one of the defining features of the crypto industry in 2025.

Key lessons from the Loomer-SBF saga include:

• Verify news sources before reacting to political headlines.
• Expect volatility in niche tokens like FTT when sensational rumors circulate.
• Recognize that political narratives often precede real policy change.
• Monitor official disclosures from DOJ and White House channels for factual updates.

Final Thoughts

While Laura Loomer’s viral claims about an SBF pardon have energized political debate, the evidence remains circumstantial. The story underscores how personality-driven politics and social media echo chambers can ripple into the financial realm — particularly in crypto, where sentiment is everything.

For now, the alleged “well-funded lobbying campaign” looks more like smoke than fire. Still, as the 2025 political season intensifies and Trump’s crypto agenda evolves, the boundaries between policy, rumor, and price action will only become more fluid.

Whether or not SBF ever sees clemency, the market reaction to such speculation proves that crypto remains one of the most politically charged arenas in modern finance.

Read Also: FTX Creditors to Receive More Payouts

FAQs

What did Laura Loomer claim about Sam Bankman-Fried?

Loomer alleged that there is a large, organized lobbying effort to persuade President Trump to pardon SBF, though no evidence has been verified.

Has any official action been taken on a Bankman-Fried pardon?

No. The Justice Department’s 2025 clemency records show no filings, and there is no White House acknowledgment of a pardon request.

Why do crypto traders care about this story?

Rumors involving Trump and crypto figures often move markets, as traders price in political influence and regulatory shifts.

How did markets react to the rumor?

FTT briefly saw speculative activity, but the broader crypto market, including Bitcoin and Ethereum, remained steady.

What are the odds of SBF being pardoned?

Prediction markets like Polymarket place the probability at roughly 3% for 2025, indicating very low confidence.